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At Arthur J. Gallagher & Co., we try to learn everything we can about the industries we serve and the risks they may encounter. It’s a commitment that’s embedded in our corporate culture to expanding our expertise, continuing educational development and gathering topical updates to remain ahead of the curve.

An average of 1,253 tornadoes occur each year in the U.S. Historically, most tornados happen in the spring and early summer, but in recent years the U.S. has experienced tornadoes during all times of the year. They can occur anywhere and have been reported in all 50 states.

The market continues its infatuation with social engineering and/ or impersonation fraud losses and insurers’ coverage of same. Social engineering scams involve crooks who trick insureds into transferring money by impersonating clients, vendors or the insured’s own executives. Almost all fidelity insurers offer social engineering coverage; however, it is important to note that coverage is not standardized and is most often subject to a sublimit.

Employment Practices Liability is in the spotlight as we enter into 2018 with a cultural shift emboldening victims to speak out, bringing a wave of public sexual harassment allegations. The headline allegations may lead to large loss payouts, and it is likely that there will be an increase in sexual harassment allegations at all companies, along with increased focus from management teams and regulators across the country.

Fiduciary Liability renewals were stable in 2017 and this coverage line continues to be the least affected in Management Liability. There have been sizable settlements in this line over the past 12 months that are noteworthy; however these are not anticipated to reflect a change in overall market condition.

The attempted repeal and replacement of the Affordable Care Act has been one of the most closely watched and anticipated political events of 2017. Attempts to dismantle the signature achievement of the Obama administration have been discussed and debated before our eyes on every news outlet in the United States.

The marketplace for Kidnap and Ransom (K&R) insurance remained stable and competitive through 2017. Premiums are as low as $400 per million limit for companies
with limited foreign exposure (locations or travel). For companies with higher exposures including foreign travel and locations, premium is around $1,000 - $3,000 per million of coverage limit.

Gallagher contacted a large food manufacturing client to discuss their overall risk management program. During the discussion, we learned that the company was experiencing issues with their current carrier and the management of their claims.